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The Giving Pyramid

One of the principles of fund-raising is the so-called "giving pyramid." This concept is graphically represented below. As this applies to independent schools (and many other not-for-profit organizations), the base is the Annual Fund, the middle level is the Capital Campaign, and the top level are bequests and other planned major gifts.

The Annual Fund is the largest group of donors, but the amount from each donor is smaller than the individual gifts in the upper levels of the pyramid. The Annual Fund represents a broad base of contributors (parents, employees, grandparents, friends, alumni, former parents, etc.) Annual Fund donations are typically used to support the annual operating budget. The Annual Fund is the foundation of the school's financial future. Often, the percentage of participation (more than the dollar amounts) in the Annual Fund is used as a measure of community support by corporations and foundations to whom we send grant proposals. Obviously, the higher the percentage of support for our Annual Fund, the more inclined foundations will be to make a contribution to our school.

The middle level of the pyramid represents those persons who contribute to the capital fund. The theory holds that 20% of persons who routinely donate to the Annual Fund will also, at some time, make a contribution during capital campaigns. Capital campaign funds are typically used to construct new buildings or improve existing facilities, not for basic operations. If you look at fund-raising from the perspective of the Development Office, you can see why it is so important to build the Annual Fund base as broadly as possible.

At the top level is a small group of donors who will one day make a major gift to the school – perhaps a bequest to establish a financial aid endowment or a legacy gift to create a faculty "chair" in honor of a favorite teacher. Again, it is believed that up to 20% of donors to capital campaigns will remember the school in estate planning and become major gift contributors.

What's the point of all this? It is, of course, that we need for all of our constituents to give to the Annual Fund – to develop the habit of supporting our school with an annual gift at their level of ability. While most people may never contribute to the capital fund, some eventually will. Ultimately, some donors will help build buildings and some will contribute to an endowment. With everyone's support we will create our giving pyramid, establishing for our school a firm foundation of donor support, and thereby ensuring the financial success of our school to serve current and future generations of students.


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Homework Forms Facebook TCS Today Job Opportunities CONTACT US Athletics Admissions Headmaster Business Office		The Giving Pyramid One of the principles of fund-raising is the so-called "giving pyramid." This concept is graphically represented below. As this applies to independent schools (and many other not-for-profit organizations), the base is the Annual Fund, the middle level is the Capital Campaign, and the top level are bequests and other planned major gifts. The Annual Fund is the largest group of donors, but the amount from each donor is smaller than the individual gifts in the upper levels of the pyramid. The Annual Fund represents a broad base of contributors (parents, employees, grandparents, friends, alumni, former parents, etc.) Annual Fund donations are typically used to support the annual operating budget. The Annual Fund is the foundation of the school's financial future. Often, the percentage of participation (more than the dollar amounts) in the Annual Fund is used as a measure of community support by corporations and foundations to whom we send grant proposals. Obviously, the higher the percentage of support for our Annual Fund, the more inclined foundations will be to make a contribution to our school. The middle level of the pyramid represents those persons who contribute to the capital fund. The theory holds that 20% of persons who routinely donate to the Annual Fund will also, at some time, make a contribution during capital campaigns. Capital campaign funds are typically used to construct new buildings or improve existing facilities, not for basic operations. If you look at fund-raising from the perspective of the Development Office, you can see why it is so important to build the Annual Fund base as broadly as possible. At the top level is a small group of donors who will one day make a major gift to the school – perhaps a bequest to establish a financial aid endowment or a legacy gift to create a faculty "chair" in honor of a favorite teacher. Again, it is believed that up to 20% of donors to capital campaigns will remember the school in estate planning and become major gift contributors. What's the point of all this? It is, of course, that we need for all of our constituents to give to the Annual Fund – to develop the habit of supporting our school with an annual gift at their level of ability. While most people may never contribute to the capital fund, some eventually will. Ultimately, some donors will help build buildings and some will contribute to an endowment. With everyone's support we will create our giving pyramid, establishing for our school a firm foundation of donor support, and thereby ensuring the financial success of our school to serve current and future generations of students.